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So I think with that, I will introduce Jim Herbert, Chairman and CEO. We also have with us, Mollie Richardson, Director of Investor Relations, and a number of other professionals that we will hear from today about the bank. So I think we will get a very good perspective of what the story is all about.We will have a 5 to 10-minute presentation from Jim. We will go into a fireside chat format and then we will break it into Q&A. Jim Herbert Okay, great. Thank you very much. Thank you all for being here. I will be brief on my opening comments and try to get to a fireside chat and some of the other people here with me because that really is the story. First Republic has been built on service. It's a repetitive franchise. It works on word-of-mouth. One client has a good experience, tells a friend of like-kind and we pick up another client. Basic growth rate of the bank has been about 20% for a long time. You can look back five year, 10 year, 15 year increments. It's not because we reached to do that, our credit standards are very high and you will see that in some of the slides and we can talk about that. It's because the service provided by individuals is so unusually good that people stay with us. We have very low attrition, and they like it enough to tell their friends. On the average, our core business is home lending, larger home lending. It has been for a long time. I started the bank in 1980, in Sunnyvale, California, stumbled in the jumbo home lending when rates were 20%. Now they are minus a decimal, and we haven’t got to zero yet but we are trying and it worked, and I am sure that 84 it’s probably just an 85, and home lending has been one of the cores of the business from the beginning.
There are a couple of basic tenets of how we operate. Very high quality people, limited number of locations, intensely focused on markets and segments, low turnover, listen to the client very carefully, very, very carefully. Almost everything we do new is the result of some client asking for something and probably in fact several clients asking for the same thing and us listening and hearing it and being comfortable doing it safely.So, we are geographically specific. So when you invest in First Republic, you are investing in a couple of things. You are investing in very high credit quality. You are investing in the geographies of New York, Boston, San Francisco, Los Angeles, primarily, west side of L.A. up and down, Santa Barbara, George County. Those are the markets we are in. We like them, we are staying in them. We don't expect to add to them. We are opening in Palm Beach but that's a service point for New York and Boston, primarily. So, that's our intense focus. The balance sheet is about 70% single-family. We like it as an asset class contrary to all the noise over last few years. We have had six basis points of cumulative losses in 27 years on $50 billion of origination. So it's a great asset class for us. We sell nine products to every home loan client that we work with. So we have a deep relationship. This is old fashioned, community bank relationship banking brought large, basically. We have a wealth management division as well. Glenn’s here, he represents that and can speak with that. That has about $22 billion in it. So, what we don't do? We are very straightforward. We don’t do proprietary trading, credit derivatives, et cetera. We don't do subprime, we never have. We don’t have any offshore business, really, of any kind. We have some offshore clients but they are doing mostly domestic-focused business.
Home loan clients. I mentioned the credit history of the bank. Our average size loan is about $1 million, 60% LTV, strong liquidity, medium net worth about $3 million, average net worth, $60 million. We have some very rich clients who still borrow and we have credit scores up in the 760s. That's the representation of everything we originate, whether we keep it or sell it. If we sell it, we keep servicing.Read the rest of this transcript for free on seekingalpha.com